Recent Debate in Washington Raises Questions About the Role of Government

By Dan Sadowski

Last November, voters confirmed what many observers had predicted by delivering an overwhelming rebuke to higher spending and long-term incumbents. Across the country, “vote the bums out” was the refrain, demonstrating voters’ intolerance with their elected officials and a desire to send a message. Congressional Republicans benefited greatly from this new approach to “change,” taking over the majority in the U.S. House of Representatives for the first time since 2007. Given their perceived mandate, Republicans immediately attempted to repeal the health-care law and to address the sluggish economy, lackluster employment and skyrocketing spending by targeting government programs.

As is widely acknowledged, the United States has two fiscal problems. The first is short-term budget deficits for “discretionary programs” made worse by the recession. This includes categories such as transportation, education, health, agriculture and energy. Defense spending is generally considered nondiscretionary, and members of Congress approach cuts at their own peril. The second is comprised of structural problems with “entitlement programs,” whereby not enough money will be collected in the future to cover the expenses for those entitled to receive benefits. The programs include Social Security, Medicare and Food Stamps. Both issues need to be addressed.

In their rush to tackle both fiscal time bombs, the Republican leadership tipped its hand and provided an opportunity for Democrats to respond. House Budget Committee Chairman Paul Ryan (R-WI) issued the “Path to Prosperity,” a document that served as the Republican plan to reduce spending and trim government regulation. The plan also attempts to decrease funding to several long-standing social programs, including Medicare and Social Security benefits.

A focus of attention has been the plan’s proposal to gradually switch Medicare from a guaranteed entitlement to a federal voucher program, transferring potential liabilities from the government to the individual.

President Obama responded by cutting a deal to extend the Bush tax cuts and then address the perception of government intrusion and overregulation. He issued an Executive Order calling on the federal government to review all regulations and identify any that have an unnecessary negative impact on American businesses. In addition, President Obama called for the repeal of the 1099 reporting requirement included in the health-care bill and signed legislation into law making it easier for small businesses to access lines of credit. In taking these issues off the table, President Obama has attempted to blunt the Republican message. Meanwhile, the Democrats have generally avoided suggesting solutions to funding entitlement programs, since it has historically been the fodder for scare tactics and negative ads.

The voting public has sent mixed signals about its current position on these issues. While the electorate appears to still seek “change” by demanding limits on spending, there is a sense that certain reforms are off limits. The debate has recently shifted to the federal debt ceiling and the refusal to raise the limit on the amount of money the government can borrow. Voters appear to demand tighter fiscal restraint—but not necessarily at the expense of entitlements.

On the face of things, it appears that the electorate is voting one way but expecting a different result. While election results show that voters demand less government intrusion in their lives, the call for reform diminishes when programs, such as Medicare, are singled out. As evidenced by the recent special election in New York’s 26th Congressional District, voters will rebuff candidates linked to the plan to reduce Medicare spending. Given this result, are voters sending a message about how far they are willing to sacrifice to reduce the federal deficit?

While these issues will frame the debate as next year’s elections approach, the end result remains to be seen. Is the recent “showdown over spending” between Democrats and Republicans the discussion voters demanded or the beginning of a lengthy and contentious debate over what role government plays in our lives and at what cost? Included in the debate will be other social and economic issues, such as how to balance environmental and economic issues and how to pursue a national energy policy.

Perhaps voters are actually seeking “leadership” rather than change—lawmakers who are willing to identify solutions, explain to the public why the solutions are necessary and build consensus to enable the public to swallow bitter medicine that puts the nation on the path to long-term fiscal responsibility.

These issues—federal spending, deficit reduction and entitlement reform—directly confront our industry because we rely on a healthy and vibrant economy to market and sell our products. Whatever the result of this debate, SEMA remains on the front line in the fight against restrictive regulation and legislative threats to our businesses and our hobby. While it appears that restrictive legislation can be averted for the moment, SEMA continues to promote the strongest position for our membership to succeed within a changing regulatory structure.

Recent Debate in Washington Raises Questions About the Role of Government

By Dan Sadowski

Last November, voters confirmed what many observers had predicted by delivering an overwhelming rebuke to higher spending and long-term incumbents. Across the country, “vote the bums out” was the refrain, demonstrating voters’ intolerance with their elected officials and a desire to send a message. Congressional Republicans benefited greatly from this new approach to “change,” taking over the majority in the U.S. House of Representatives for the first time since 2007. Given their perceived mandate, Republicans immediately attempted to repeal the health-care law and to address the sluggish economy, lackluster employment and skyrocketing spending by targeting government programs.

As is widely acknowledged, the United States has two fiscal problems. The first is short-term budget deficits for “discretionary programs” made worse by the recession. This includes categories such as transportation, education, health, agriculture and energy. Defense spending is generally considered nondiscretionary, and members of Congress approach cuts at their own peril. The second is comprised of structural problems with “entitlement programs,” whereby not enough money will be collected in the future to cover the expenses for those entitled to receive benefits. The programs include Social Security, Medicare and Food Stamps. Both issues need to be addressed.

In their rush to tackle both fiscal time bombs, the Republican leadership tipped its hand and provided an opportunity for Democrats to respond. House Budget Committee Chairman Paul Ryan (R-WI) issued the “Path to Prosperity,” a document that served as the Republican plan to reduce spending and trim government regulation. The plan also attempts to decrease funding to several long-standing social programs, including Medicare and Social Security benefits.

A focus of attention has been the plan’s proposal to gradually switch Medicare from a guaranteed entitlement to a federal voucher program, transferring potential liabilities from the government to the individual.

President Obama responded by cutting a deal to extend the Bush tax cuts and then address the perception of government intrusion and overregulation. He issued an Executive Order calling on the federal government to review all regulations and identify any that have an unnecessary negative impact on American businesses. In addition, President Obama called for the repeal of the 1099 reporting requirement included in the health-care bill and signed legislation into law making it easier for small businesses to access lines of credit. In taking these issues off the table, President Obama has attempted to blunt the Republican message. Meanwhile, the Democrats have generally avoided suggesting solutions to funding entitlement programs, since it has historically been the fodder for scare tactics and negative ads.

The voting public has sent mixed signals about its current position on these issues. While the electorate appears to still seek “change” by demanding limits on spending, there is a sense that certain reforms are off limits. The debate has recently shifted to the federal debt ceiling and the refusal to raise the limit on the amount of money the government can borrow. Voters appear to demand tighter fiscal restraint—but not necessarily at the expense of entitlements.

On the face of things, it appears that the electorate is voting one way but expecting a different result. While election results show that voters demand less government intrusion in their lives, the call for reform diminishes when programs, such as Medicare, are singled out. As evidenced by the recent special election in New York’s 26th Congressional District, voters will rebuff candidates linked to the plan to reduce Medicare spending. Given this result, are voters sending a message about how far they are willing to sacrifice to reduce the federal deficit?

While these issues will frame the debate as next year’s elections approach, the end result remains to be seen. Is the recent “showdown over spending” between Democrats and Republicans the discussion voters demanded or the beginning of a lengthy and contentious debate over what role government plays in our lives and at what cost? Included in the debate will be other social and economic issues, such as how to balance environmental and economic issues and how to pursue a national energy policy.

Perhaps voters are actually seeking “leadership” rather than change—lawmakers who are willing to identify solutions, explain to the public why the solutions are necessary and build consensus to enable the public to swallow bitter medicine that puts the nation on the path to long-term fiscal responsibility.

These issues—federal spending, deficit reduction and entitlement reform—directly confront our industry because we rely on a healthy and vibrant economy to market and sell our products. Whatever the result of this debate, SEMA remains on the front line in the fight against restrictive regulation and legislative threats to our businesses and our hobby. While it appears that restrictive legislation can be averted for the moment, SEMA continues to promote the strongest position for our membership to succeed within a changing regulatory structure.

Crossover Continues Between Specialty-Equipment and Repair Industries

By Steve Campbell

“Highly successful collision repair shops do a good job of diversifying their businesses,” said Aaron Schulenburg, executive director of Society of Collision Repair Specialists (SCRS). “They keep a core focus on collision repair but add other revenue mechanisms and services to bring in valuable profit centers and increase business. While shops have overhead in their buildings and their employees, they also utilize skill sets very similar to those found in a lot of the other markets that take part in the SEMA Show.”

Those similarities and commonalities create natural collaborative opportunities in the manufacturing, retail and service sides of both the specialty-equipment and collision-repair industries.

“Buyers at the SEMA Show are constantly seeking opportunities to expand and grow,” said Peter MacGillivray, SEMA vice president of communications and events. “The floor sections make it easy for buyers to hone in on the products most relevant to their businesses and make the best use of their time at the SEMA Show. They can easily discover the most relevant cross-marketing opportunities and see what the hot trends are.”

Schulenburg pointed out that collision repair specialists might also discover an abundance of products, tools, services and expertise that dovetail perfectly with their existing operations.

	SEMA Show organizers have placed increasing importance on seminars targeted specifically at those interested in collaborating with collision repair businesses, and the Society of Collision Repair Specialists and its Repairer Driven Education program have been instrumental in delivering value to that growing group.
	Collision repair specialists are likely to discover an abundance of products, tools, services and expertise that dovetail perfectly with their existing operations at this year’s SEMA Show.

By the same token, SEMA-member companies may find that supplying and partnering with collision repair businesses can open whole new markets for their products or services.

“The nice thing about collision repair is that we work on a lot of newer cars,” Schulenburg explained. “There are parts and services in virtually every section of the SEMA Show that can be applied to new vehicles and to the customers who utilize collision repair shops. Our industry has traditionally referred things, such as mobile audio, to the guy down the street, but there is a huge opportunity to capture more business with an existing customer base by bringing some of those services in-house.”

Schulenburg said that he and other executives from SCRS received overwhelmingly positive feedback from members of their organization who attended last year’s SEMA Show.

“Many of the collision repairers who attended for first time last year reported that they were overwhelmed with the scope of the exhibits and the ideas they were presented with,” he said. “After the first day, they went back to their rooms and drew up plans for where they wanted to concentrate their efforts during the rest of the week. They left inspired with some really good ideas about how to get into new areas of business.”

They also took advantage of the Repairer Driven Education (RDE) seminars that were sponsored and presented by SCRS. This year’s slate of RDE programs (visit www.SCRS.com for details) complements SEMA’s Education Week offerings, which typically feature 50–60 sessions and are one of the cornerstones of the annual trade-only event. As more specialty-equipment attendees at the SEMA Show have become interested in the paint-and-body market, Show organizers have placed increasing importance on seminars targeted specifically at those interested in collaborating with collision repair businesses. SCRS and its RDE program have been instrumental in delivering value to that growing group.

“While a number of this year’s classes are designed specifically for repairers, most of them are relevant to automotive businesses in general,” said Schulenburg. “We have marketing classes, strategy and decision-making classes, courses on regulations that impact not only bodyshops, but also other markets that work on cars. We also have technical courses and others that cover pricing and economic considerations. There is not a SEMA Show attendee nor exhibitor who wouldn’t gain significant benefit from attending the RDE offerings from SCRS.”

The presence of the collision repair industry at the SEMA Show is a natural fit, Schulenburg said. The innovation and creativity foster inspiration and development, which is why he encourages all of SCRS’ members and every collision repair shop to attend.

“There is nothing better than getting good quality education and training, getting new ideas and doing it in an exciting environment where you feel that you can actually go back and implement what you’ve learned when you return home,” he said.

Specialty-equipment businesses that would like additional information about opportunities for collaboration with collision repair facilities may visit the SCRS booth in the Collision Repair & Refinish section of the SEMA Show (North Hall, booth #10727) or visit the SCRS website (www.SCRS.com) for information.

Crossover Continues Between Specialty-Equipment and Repair Industries

By Steve Campbell

“Highly successful collision repair shops do a good job of diversifying their businesses,” said Aaron Schulenburg, executive director of Society of Collision Repair Specialists (SCRS). “They keep a core focus on collision repair but add other revenue mechanisms and services to bring in valuable profit centers and increase business. While shops have overhead in their buildings and their employees, they also utilize skill sets very similar to those found in a lot of the other markets that take part in the SEMA Show.”

Those similarities and commonalities create natural collaborative opportunities in the manufacturing, retail and service sides of both the specialty-equipment and collision-repair industries.

“Buyers at the SEMA Show are constantly seeking opportunities to expand and grow,” said Peter MacGillivray, SEMA vice president of communications and events. “The floor sections make it easy for buyers to hone in on the products most relevant to their businesses and make the best use of their time at the SEMA Show. They can easily discover the most relevant cross-marketing opportunities and see what the hot trends are.”

Schulenburg pointed out that collision repair specialists might also discover an abundance of products, tools, services and expertise that dovetail perfectly with their existing operations.

	SEMA Show organizers have placed increasing importance on seminars targeted specifically at those interested in collaborating with collision repair businesses, and the Society of Collision Repair Specialists and its Repairer Driven Education program have been instrumental in delivering value to that growing group.
	Collision repair specialists are likely to discover an abundance of products, tools, services and expertise that dovetail perfectly with their existing operations at this year’s SEMA Show.

By the same token, SEMA-member companies may find that supplying and partnering with collision repair businesses can open whole new markets for their products or services.

“The nice thing about collision repair is that we work on a lot of newer cars,” Schulenburg explained. “There are parts and services in virtually every section of the SEMA Show that can be applied to new vehicles and to the customers who utilize collision repair shops. Our industry has traditionally referred things, such as mobile audio, to the guy down the street, but there is a huge opportunity to capture more business with an existing customer base by bringing some of those services in-house.”

Schulenburg said that he and other executives from SCRS received overwhelmingly positive feedback from members of their organization who attended last year’s SEMA Show.

“Many of the collision repairers who attended for first time last year reported that they were overwhelmed with the scope of the exhibits and the ideas they were presented with,” he said. “After the first day, they went back to their rooms and drew up plans for where they wanted to concentrate their efforts during the rest of the week. They left inspired with some really good ideas about how to get into new areas of business.”

They also took advantage of the Repairer Driven Education (RDE) seminars that were sponsored and presented by SCRS. This year’s slate of RDE programs (visit www.SCRS.com for details) complements SEMA’s Education Week offerings, which typically feature 50–60 sessions and are one of the cornerstones of the annual trade-only event. As more specialty-equipment attendees at the SEMA Show have become interested in the paint-and-body market, Show organizers have placed increasing importance on seminars targeted specifically at those interested in collaborating with collision repair businesses. SCRS and its RDE program have been instrumental in delivering value to that growing group.

“While a number of this year’s classes are designed specifically for repairers, most of them are relevant to automotive businesses in general,” said Schulenburg. “We have marketing classes, strategy and decision-making classes, courses on regulations that impact not only bodyshops, but also other markets that work on cars. We also have technical courses and others that cover pricing and economic considerations. There is not a SEMA Show attendee nor exhibitor who wouldn’t gain significant benefit from attending the RDE offerings from SCRS.”

The presence of the collision repair industry at the SEMA Show is a natural fit, Schulenburg said. The innovation and creativity foster inspiration and development, which is why he encourages all of SCRS’ members and every collision repair shop to attend.

“There is nothing better than getting good quality education and training, getting new ideas and doing it in an exciting environment where you feel that you can actually go back and implement what you’ve learned when you return home,” he said.

Specialty-equipment businesses that would like additional information about opportunities for collaboration with collision repair facilities may visit the SCRS booth in the Collision Repair & Refinish section of the SEMA Show (North Hall, booth #10727) or visit the SCRS website (www.SCRS.com) for information.

A Guide to the New Tools & Equipment Products Introduced at the SEMA Show

Every business involved in the automotive specialty-equipment market has at least one thing in common: They all want to develop the most efficient way to provide customers with top-quality parts, assemblies or services. Finding the right tool for the right job can go a long way toward fulfilling that goal.

The 125 exhibitors in the Tool & Equipment section of the 2010 SEMA Show provided displays that covered more than 28,000 sq. ft. in the Las Vegas Convention Center, and they introduced nearly 130 items in the New Products Showcase. These offerings included applications for virtually every business in the industry. Ranging from test equipment to power tools and from cabinets to creepers, the Showcase was brimming with gear that could shave time and cost from any technician’s workload.

The accompanying guide to new Tools & Equipment products just might harbor the perfect hand or power tools and diagnostic or test equipment to make your company more effective. And even if you’re not in the market for a rotator ratchet or a new hex key set, what gearhead doesn’t enjoy browsing through the latest in tool technology?

Enjoy!

Bossco International Corp.
Cuff Lite
888/257-1460
www.bosscointernational.com
PN: 212

The HI:BEAM Cuff Lite is perfect for all activities where you need extra light. Whether you're working in the garage or in a tight, dark place you will now have bright illumination directly on your project so you no longer have to fumble with a flashlight or lantern.

A Guide to the New Tools & Equipment Products Introduced at the SEMA Show

Every business involved in the automotive specialty-equipment market has at least one thing in common: They all want to develop the most efficient way to provide customers with top-quality parts, assemblies or services. Finding the right tool for the right job can go a long way toward fulfilling that goal.

The 125 exhibitors in the Tool & Equipment section of the 2010 SEMA Show provided displays that covered more than 28,000 sq. ft. in the Las Vegas Convention Center, and they introduced nearly 130 items in the New Products Showcase. These offerings included applications for virtually every business in the industry. Ranging from test equipment to power tools and from cabinets to creepers, the Showcase was brimming with gear that could shave time and cost from any technician’s workload.

The accompanying guide to new Tools & Equipment products just might harbor the perfect hand or power tools and diagnostic or test equipment to make your company more effective. And even if you’re not in the market for a rotator ratchet or a new hex key set, what gearhead doesn’t enjoy browsing through the latest in tool technology?

Enjoy!

Bossco International Corp.
Cuff Lite
888/257-1460
www.bosscointernational.com
PN: 212

The HI:BEAM Cuff Lite is perfect for all activities where you need extra light. Whether you're working in the garage or in a tight, dark place you will now have bright illumination directly on your project so you no longer have to fumble with a flashlight or lantern.